InCredit - 23 February 2016

REGULATORY

Discussion paper on ageing populations and financial services

The Financial Conduct Authority published on 22 February a discussion paper on the ageing population and financial services (DP16/1) with a view to promoting a debate about how financial services work for older consumers, for example touching on themes such as lending into retirement. It will also complement work on the provision of financial services to vulnerable consumers. The FSA will be carrying out further research and consulting with a view to developing an FCA Strategy on the Ageing Population to be launched in 2017. The deadline for responses at this stage is 15 April 2016.

FCA, 22 February 2016

Review of Consumer Credit Act

The Financial Conduct Authority published a call for input on 18 February 2016 on its review of retained provisions of the Consumer Credit Act 1974. On transfer of consumer credit regulation to the FCA, some CCA provisions were retained and other replaced by FCA rules. The regulator is now required to review the remaining provisions and report to the Government by 1 April 2019. Its objective is to simplify the regime, ensuring that consumer protection does not place an undue burden on firms. Responses are due by 18 May 2016.

Guidance consultation on enforcing security under the CCA published by FCA

The Financial Conduct Authority has published a guidance consultation (GC16/2) in relation to their views on enforcing security under the Consumer Credit Act 1974. The guidance will concern the operation, in particular, of section 87 of the CCA with regard to serving a default notice before taking action consequent on the breach of a regulated credit agreement with respect to guarantor loans. The FCA considers that if a creditor wishes to obtain payment from a guarantor following default by the debtor, it must first serve a default notice on the debtor (providing a copy to the guarantor) and allow at least 14 days to pass.

FCA, February 2016

PRA consultation on amendments to loan to income ratio rules

The Prudential Regulation Authority has published a consultation paper (CP6/16) on proposed amendments to the rules on loan to income (LTI) ratios in mortgage lending. Implementation of the Mortgage Credit Directive would automatically apply the LTI flow limit to second and subsequent charge mortgage contracts which are currently outside these requirements. The proposed rule changes would continue their exclusion for the time being. There will be a further consultation on whether to include them in future when loan data becomes available in 2017. This consultation runs until 11 March 2016.

Building society mortgage approvals rise 10% in 2015

The Building Society Association has published statistics on mortgage lending and saving for 2015 which show an increase in gross lending and mortgage approvals on 2014. The value of mortgage loans approved in 2015 increased 10% on 2014 at £57.8 billion.

BSA, 17 February 2016

Banks behind a quarter of lending on P2P websites

The University of Cambridge and Nesta have published a report on the alternative finance industry showing that banks accounted for a quarter of loans on peer-to-peer websites. According to the report, P2P and crowdfunding sites grew 84% in 2015, to £3.2bn. Nesta, 17 February 2016